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Saudi Electronic University Accounting Questions

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I’m working on a accounting question and need an explanation to help me learn.

Q2 The following data were obtained from the accounting information system of ABC Corporation:

UnitsTotal Cost

Month Produced

January 60SAR1,533.4

February 501,300

March 802,000

April  30833.5

a.Use the data for February and March and the two – point method to determine a cost function.

b.Use the high – low method to determine a cost function.

Q3 XYZ Corporation sells its product for $17 per unit.Its variable cost is $10 per unit, and total fixed costs are $800.Assuming next period’s estimated sales are 300, calculate the following amounts:

a.Degree of operating leverage

b.Margin of safety in units 

c.Margin of safety in revenues 

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